ABC Company manufactures two sizes of ceramic paperweights, regular and jumbo. The following information applies to their expectations for the planning period:
Cost Pool Overhead Costs Activity-cost driver
Materials handling $ 45,000 90,000 orders
Machine maintenance $300,000 15,000 maintenance hours
Setups $270,000 45,000 setups
Inspections $105,000 21,000 inspections
Total support costs $720,000
Direct Material used $2,000
Direct Labor $3,000
During October, ABC produced 700,000 regular ceramic paperweights and Mayan's production manager counted. The total machine budget hours is 72,000.
Instructions answer the following questions and show all your computations.
1. Using ABC: Answer the following: (4 points)
For October, Mayan's controller assigned $________ indirect costs to the regular product line.
2. Using a single rate determine the manufacturing cost to the regular product line. (4 p